The move is being seen as a contingency plan by Carillion, which employs more than 20,000 people, as it attempts around £300m of emergency funding by the end of this month.

The Sky News report added this does not necessarily mean EY will ultimately be appointed.

It comes as government officials and regulators hold crisis talks today in an attempt to safeguard the interests of more than 28,000 pension scheme members who could face retirement cuts if Carillion collapses.

These talks take place 24 hours after a meeting of ministers from a number of Whitehall departments, reported by the Financial Times, to discuss contingency plans for the firm’s collapse.

This saw its share price jump 26% in trading on Monday, with Carillion issuing a statement to the London Stock Exchange claiming it didn’t know why this had happened.

Cenkos analyst Kevin Cammack said: “A crucial stage has been reached, with Carillion having something to put to its lenders and stakeholders [pension fund].

“I honestly could not say whether it’s enough and I’m sure much brinksmanship will be on display over the next few days. The sheer number of lenders, both UK and overseas, makes it harder but I believe that the major two UK banks have agreed a debt to equity in principle.”

Meanwhile, trade union Unite has also urged the government to “consider all possible options” regarding Carillion, including bringing contracts in-house.

The union represents over 1,000 workers at the contractor and its assistant general secretary Gail Cartmail said: “The government must consider all options while the future of Carillion hangs in the balance, including bringing contracts back in-house.

“If taxpayer’s money is used to fund corporate mismanagement then the government should be looking to ensure that public sector contracts are brought back in-house at the earliest possible opportunity.

“If the government is forced to institute a rescue package, they need to also ensure that the supply chain is fully protected.”

New Carillion chief executive Andrew Davies is due to start at the Wolverhampton-based business on Monday week.